Question

In which of the following areas different accounting policies may be adopted by different enterprises.

• A. Valuation of Inventory
• B. Method of depreciation
• C. Treatment of Goodwill
• D. All the three

Answer 1

The correct option is D All the three

Consistency is the basic assumption and it is assumed that various policies or methods adopted by the firm while preparing the financial statement are consistent from one period to another. However, different firms may follow the different accounting policies.